China will continue to install the software, called Green Dam-Youth Escort, on computers at schools, in Internet cafes, and other public places, Mr. Li added.

Mr. Li’s comments are China’s most clear climb-down to date on the issue, after its plan to require the software to be shipped with all computers sold in China were delayed indefinitely in June.

Mr. Li said the software was always intended to be optional and not a mandatory installation, and said the regulations were unclear when first released by the Ministry of Industry and Information Technology in May.